Sponsored By:

Qualcomm’s Consolidation Should Lead to More New Highs

QCOM's recent consolidations have resulted in breakouts

   

Qualcomm (QCOM) — This stock was included on my list of Top Stocks to Buy for October, when it was trading below $69, and was last reviewed on Nov. 15 near $71.

The company is a leader in developing products and services based on its advanced wireless broadband technology. It expects solid chipset sales throughout the coming year, and it is believed its Snapdragon chipset will provide an advantage in the wireless area over competitors. It has a strong royalty base in markets like China, which are converting from 2G to 3G.

In the past week, consensus EPS estimates for fiscal year (FY) 2013, ended in September, have been raised to $5.17 from $5.08. And FY 2014 estimates have been increased to $5.63 from $5.56. S&P has a “five-star strong buy” rating on the stock and raised its 12-month price target to $90 from $85.

A cup-and-handle formation consolidated into a rectangle that traded sideways from September to November. Then, a mid-November breakout resulted in a new high. It now appears to be consolidating again with support at about $73.

Buy QCOM at the current price with a trading objective of $80; however, investors may buy it as a long-term hold with an objective north of $100.

12 10 13 qcom 300x195 Qualcomm's Consolidation Should Lead to More New Highs
Click to Enlarge

chart key 300x84 Qualcomm's Consolidation Should Lead to More New Highs

P.S. – Traders looking to Serge Berger’s free Beat the Bell service every morning will be putting themselves in capable hands.

Serge has worked for InvestorPlace for years now, and has filled in for me on the rare occasion I take a few days off. Every time I return, I see plenty of reader compliments about Serge’s work.

Serge’s technique involves swing trades in stocks and ETFs that last anywhere from two days to four weeks. He is frequently successful in capturing high-probability trades that are set up at confluence zones of support/resistance using candlesticks as his charting method.

And Serge’s advice isn’t just one-time, one-way. Win or lose, he frequently revisits ideas after the fact to see what can be learned and what new trades can be made. More importantly, Serge connects with his readers, frequently answering questions and fielding some tough ones with aplomb.

I have no doubt that traders will be well-served by Beat the Bell and Serge’s daily flow of ideas.

– Sam Collins, InvestorPlace Chief Technical Analyst


Article printed from InvestorPlace Media, http://investorplace.com/2013/12/trade-day-qualcomm-qcom-3/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.